AFMR/ Assignment – AT2 /Business Legislation / FT401C

March , Batch 2021-23

MM: 40

Read the case carefully. And answers the questions given below.

Case
Dharmodas Ghose is the plaintiff and Mohori Bibee is the defendant but she is
the executive and legal representor of Brahmo Dutt. He enters in a contract by
misrepresenting his age and him being a major. He entered in a contact to
mortgage his property in favour of a moneylender named Brahmo Dutt. The
deal between the two was that an amount of loan was to be given by defendant
in return or in lieu of the property mortgaged. The amount of loan was Rs.
20,000. A part of this money value had already been transferred to plaintiff by
the attorney. This relation states that if on principal’s behalf agent carries on
transaction and if any information is passed to agent, it is received by the
principal also.
Half of the deal was executed; the attorney comes to know that person was a
minor as informed by his mother via a letter stating that any contract entered
with him will be the responsibility of the person himself or herself. Principal
and agent relationship is one which existed between moneylender and attorney.
The attorney, Kedar Nath acted on behalf of the moneylender. At the same time,
the minor played the card to cancel the contract as it was not for necessities.
But while an appeal was being made against plaintiff, unfortunately the
moneylender died but the same case was executed further by his executive that
is his wife Mohori Bibee.A part of the loan that is Rs 10,500 had already been
given to the minor and the request or main issues was that then this amount
should be returned which was advanced to the plaintiff. The rate of interest on
loan of Rs 20,000 being 12%. On September 10,1885, defendant with his
mother bought a legal action stating that since he is a minor so the contract
cannot be executed.
 Questions:

Q.1 Identify the conditions, under which a contract can be declared as void or
void ab initio?

Q2 (a) Assume you are the legal advisor in this case, what will be your
recommendation to the plaintiff side.
Q2 (b) Assume you are the legal advisor in this case, what will be your
recommendation to the defendant side.

Q3 After analyzing the above case, Give your opinion about the general
principle of contract which is violated in this case.

Question Word limit Marks BL CO PO PI

1 200-250 10 Understandin 1 - -
g
2a 150-200 8 Applying  2 2 -

2b 150-200 7 Applying 2 2 -

3 200-250 15 Analyzing 3 1 -